The popularity of ridesharing services continues to grow across British Columbia, providing drivers with a flexible opportunity to earn additional income. Whether you’re planning to drive for Uber, Lyft, or another approved platform, understanding how your insurance coverage works is an important part of getting started.
Before participating in any ridesharing program, it’s important to understand the insurance requirements and coverage options available to you. Reliance Insurance helps drivers in Burnaby and across British Columbia navigate ICBC ridesharing requirements and find coverage that fits their needs.
If you’re considering ridesharing, discuss your plans with your insurance broker before getting started
What Is Ridesharing?
Ridesharing, also known as Transportation Network Services (TNS), refers to services such as Uber and Lyft that connect drivers and passengers through a mobile app.
Unlike traditional vehicle use, it involves carrying paying passengers and requires additional insurance coverage through ICBC.
The good news is that in many situations, your vehicle can remain rated for pleasure, work, or business use while participating in ridesharing activities, provided the appropriate TNS endorsement has been added to your policy.
How Ridesharing Coverage Works
There are generally two stages of coverage when operating as a rideshare driver:
Offline
When you’re not logged into the app, your ICBC coverage applies as normal.
Logged Into the App & Active Trips
Once you’re logged into the app and available to accept ride requests, your ridesharing insurance coverage is in effect. Your insurance coverage remains active from the moment you accept a ride request until you drop off your passenger. Applicable ICBC TNS coverage and any coverage provided through the ridesharing platform apply during this time.
Coverage can vary between rideshare providers. Before getting started, be sure to review the insurance coverage provided by Uber, Lyft, or any other platform you drive for, including their requirements.
Ridesharing Is Different From Food Delivery
While both involve using your vehicle to generate income, ridesharing and food delivery are treated differently by insurance companies.
Ridesharing involves transporting passengers through services such as Uber or Lyft. Food delivery services, including Uber Eats, DoorDash, Skip, and other delivery platforms, typically require a vehicle to be insured for delivery use.
When using your vehicle to deliver food, parcels, or other goods, it’s important to discuss your intended use with your broker to ensure the appropriate coverage is in place.
Drivers participating in both ridesharing and delivery services should disclose both activities to ensure their coverage is tailored to their specific needs.
Ridesharing involves carrying paying passengers and requires additional insurance coverage through ICBC.
Understanding ICBC TNS Endorsements
If you plan to use your vehicle for ridesharing, an ICBC Transportation Network Services (TNS) endorsement may need to be added to your policy.
This endorsement allows your vehicle to be used for approved ridesharing activities while maintaining the appropriate insurance coverage.
Depending on how frequently you drive for ridesharing services, ICBC offers endorsement options for:
- Up to 6 days per month
- More than 6 days per month
For a small additional premium, customers may also choose to extend their Optional ICBC coverages, so they continue to apply while participating in approved ridesharing activities.
These coverages can include:
- Extended Third-Party Liability
- Collision Coverage
- Comprehensive Coverage
This allows customers to customize their coverage based on their needs and the insurance protection already provided by the ridesharing platform.
If you’re unsure which option is right for you, we recommend discussing your plans with your broker before getting started.
Can I Still Keep My Vehicle Replacement Coverage?
Customers who drive for approved ridesharing services such as Uber or Lyft may still be eligible for vehicle replacement coverage options, subject to program eligibility requirements.
As part of the solutions we offer, Optiom Vehicle Replacement may be available to qualifying rideshare drivers, providing additional peace of mind for those who want replacement protection while earning income through ridesharing.
Coverage availability may depend on your vehicle usage, insurance requirements, and program eligibility. If you’re considering ridesharing, be sure to discuss your plans with your broker before getting started so you can better understand the available options and how your vehicle replacement coverage may be impacted.
Before You Get Started
Before participating in a ridesharing program, consider the following:
- Obtain a quote for any required TNS endorsement options.
- Review the insurance coverage provided by the ridesharing platform.
- Ensure your vehicle is properly endorsed for ridesharing use.
- Determine whether you’ll also be performing delivery services.
- Decide whether you’d like Optional ICBC coverages extended during ridesharing activities.
- Review how replacement coverage may apply to rideshare activities.
- Keep copies of all insurance documentation for your records.
Final Thoughts
Ridesharing offers British Columbians a flexible way to earn additional income while using a vehicle they already own. Like any business activity, it comes with unique insurance considerations, which is why it’s important to understand your options before getting started.
Whether you’re planning to drive for Uber, Lyft, or another ridesharing platform in British Columbia, taking the time to properly set up your coverage can help ensure you have the protection that best suits your needs.
If you’re considering ridesharing and would like to learn more about available ICBC endorsement and coverage options, the Reliance Auto Team can assist. Based in Burnaby and serving customers throughout British Columbia, Reliance Insurance can review your planned vehicle use, provide a quote, and explain the coverage options available for ridesharing activities.
With the right coverage in place, you can focus on the road ahead with greater confidence, knowing your insurance is aligned with how you use your vehicle.
Reliance Insurance supports clients across Canada through a national network of offices and globally through our broker network partners.